Reuters Advertisers are committed to continue spending on TikTok due to its immense popularity with users despite threats of a potential ban in the U.S. over national security concerns, ad experts said.
The steadfastness comes as TikTok, which is owned by Chinese tech firm ByteDance, is fighting to prevent a ban in the U.S. after lawmakers introduced a bill that would grant President Joe Biden39;s administration authority to ban apps that pose security risks. The shortform video app has already been banned from governmentissued phones in multiple countries.
TikTok is set to host a presentation for advertisers on Thursday evening in New York as part of NewFronts, an annual week of events where social media and streaming video platforms reveal new content and features for marketers.
Despite the concerns about its Chinese ownership, TikTok39;s ad business is poised to grow 36 to 6.83 billion this year, according to research firm Insider Intelligence.
Ryan Detert, chief executive of Influential, an influencer marketing company, said that of the firm39;s clients none are saying 39;don39;t spend money on TikTok,39; he said.
There39;s no contagion that we39;re seeing, he added. Influential has worked with brands including Pepsi and the NFL.
Two media buyers at two different major ad agencies told Reuters that Washington39;s scrutiny over the app had yet to impact their clients39; plans on TikTok. The two buyers spoke on condition of anonymity to discuss relationships…